Softer Oil and State Election Trends Lifts Equities; but IT and Banks Cap Upside

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

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India Shares rise

By Dehuti Jani

May 4, 2026 at 11:54 AM IST

Indian equities ended higher on Monday, supported by easing crude oil prices, strong auto sales data and positive trends in state election results. The Nifty50 rose 0.51% to 24,119.30, while the BSE Sensex gained 0.46% to 77,269.40, although both indices pared intraday gains due to weakness in IT and banking stocks.

Sentiment improved after Brent Crude cooled from last week’s four-year high of $126 to around $109.6 per barrel, following remarks by Donald Trump on ensuring safe passage of ships through the Strait of Hormuz. Lower oil prices provided relief for India’s inflation and external balance outlook. Markets also reacted positively to early election trends, with BJP showing strong performance in key states West Bengal and Assam.

Broader markets outperformed, with the Nifty MidCap and Nifty SmallCap indices rising 0.63% and 0.70%, respectively. Sectorally, realty and metal stocks led gains, while IT and PSU banks lagged. Weakness in technology stocks and Kotak Mahindra Bank capped the upside, keeping benchmark gains moderate despite strong underlying market breadth.

Top Movers of the Day

Maruti Suzuki gained around 1.92% to ₹13,570 after strong April sales data and continued demand momentum in the auto sector lifted sentiment.

Bajaj Auto surged nearly 1.57% to ₹10,151, an 18-month high on robust sales growth, supporting the broader auto rally.

Hindustan Unilever rose about 2.49% to ₹2,307 after reporting higher quarterly profits, attracting defensive buying.

Equitas Small Finance Bank jumped 6.8% to ₹71.40 as strong earnings and improved outlook boosted investor interest.

Kotak Mahindra Bank declined 3.18% to ₹371.10 after Q4 results amid concerns over margin outlook despite profit growth.

Ambuja Cements gained marginally to ₹444.60 after reporting a nearly threefold YoY rise in Q4FY26 net profit to ₹16.44 billion, driven by tax gains and record cement sales volumes.

Ather Energy traded marginally higher by 0.23% to ₹937 after reporting a narrowing of losses in Q4FY26, supported by strong volume growth and improved operating leverage.

Ideaforge Technology hit the 20% upper circuit at ₹731.10 and a 52-week high after strong Q4FY26 results and a healthy business outlook.

Vedanta surged around 8.4% to ₹294.50 in its first trading session post demerger ex-date, driven by restructuring-led investor interest.

Netweb Technologies declined over 3% to ₹3,939 despite reporting strong Q4FY26 results, indicating profit booking after recent gains.

Avenue Supermarts declined around 4.8% to ₹4,365 after Q4 results as margin pressure and valuation concerns weighed on sentiment.

Futures & Options
Nifty May 2026 futures closed at 24,199, trading at a premium of 79.70 points to the spot Nifty 50 close of 24,119.30, reflecting continued positive positioning in the derivatives market. In the cash segment, the Nifty 50 gained 121.75 points or 0.51%.

Volatility eased slightly, with India VIX declining 0.86% to 18.30. In the F&O segment, BHEL, Kotak Mahindra Bank and Reliance Industries were the most actively traded stock futures contracts. The May 2026 derivatives series will expire on 26 May 2026.

Bonds
India's government bond yields ended almost flat on Monday after a weak start, as elevated yield levels attracted some value buying. The benchmark 6.48% 2035 government bond yield closed at 7.0194%, compared with 7.0148% in the previous session.

Despite intermittent buying interest, sentiment remained cautious due to volatile Brent Crude prices, which continue to raise concerns around inflation and India’s macro stability. Political developments also remained in focus, with early election trends indicating gains for BJP’s coalition in West Bengal, adding another layer of market attention alongside global cues.

Forex
Indian rupee weakened to a fresh record closing low on Monday as rising dollar demand and elevated crude oil prices continued to weigh on the currency. The rupee ended at 95.0875 against the US dollar, down 0.18% from the previous session.

Pressure on the currency was driven by demand linked to maturing non-deliverable forward positions, along with concerns over higher oil prices amid ongoing geopolitical tensions. Elevated Brent Crude levels continued to raise fears around inflation, external balances and capital flows.

According to Reuters report, the Reserve Bank of India is exploring measures to mobilise dollar inflows in order to strengthen foreign exchange reserves and stabilise the rupee amid sustained external pressures.

Crypto
Crypto markets turned decisively bullish on Monday, with strong risk appetite and easing macro concerns driving a broad-based rally. Total market capitalisation rose 2.48% to around $2.66 trillion, supported by institutional flows and improved sentiment following geopolitical developments.

Bitcoin surged 2.77% to $80,335, breaking above the key $80,000 resistance level and pushing its market capitalisation beyond $1.6 trillion. Ethereumoutperformed, rising 3.97% to $2,392.93, while most major altcoins also gained over 2%. The rally was partly attributed to improved investor confidence following initiatives such as “Project Freedom,” which helped ease concerns around global macro uncertainty.

US Stock Futures
US stock futures were mixed and largely muted on Monday as investors assessed fresh developments around the Strait of Hormuz following the launch of “Project Freedom” by the US administration. Futures linked to the S&P 500 were little changed after the benchmark closed at a record high on Friday. Meanwhile, Dow Jones Industrial Average futures slipped around 0.2%, while Nasdaq-100 futures edged 0.2% higher, supported by recent strength in technology stocks.

Investor sentiment remained cautious as markets balanced geopolitical risks in West Asia with the recent rally in US equities, with energy prices and shipping disruptions continuing to influence the broader risk outlook.

US Treasury Notes
Yields on US Treasury moved higher in pre-market trading on Monday as investors positioned for upcoming economic data and reassessed the macro-outlook. The benchmark 10-year Treasury yield rose by around 3.5 basis points to 4.41%, while the policy-sensitive 2-year yield stood near 3.92%.

The uptick in yields reflected continued expectations of a “higher-for-longer” interest rate environment, as markets digested recent signals from the Federal Reserve and monitored inflation risks linked to elevated Brent Crude prices amid ongoing geopolitical tensions.

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